E] What Are Smart Contracts Used For?
Smart Contracts Blockchain application can be used for varied purposes by individuals, business organisations and for the Internet of Things (IoT)
. Mentioned below are a few areas where Smart Contracts are currently being used for.
1. Smart Contracts Applications for Healthcare
The number #1 concern in the healthcare sector is the misuse of patients information. Since most of the clinical data is maintained on paper, private health records are often vulnerable to theft. Thus, here, Smart Contracts can be a valuable aid as it will not only ensure complete security & integrity of all clinical data but it will also make sure that no third-party has access to these private records.
Also, maintaining the numerous healthcare-related records can be cumbersome leading to administrative inefficiency. As such, with Smart Contracts, this issue would also be resolved as it facilitates the easy organization of general healthcare management. This includes the supervision of all healthcare supplies and drugs to ensure there is no transgression. It will also take care of regulation, compliance and testing needs, limiting the need for any third-party involvement and human error.
2. Smart Contracts Applications for Real Estate
As mentioned above, be it renting an apartment, buying a property or selling a piece of land, with Smart Contract you can easily create agreements and make transactions all without paying a dime to brokers, middlemen or real estate agents. This will also terminate instances of fraud, as all terms & conditions will be encrypted leaving no chance for manipulation.
3. Smart Contracts Applications for Government
One area where Smart Contracts can be a great aid for the Government is the overhauling of the Voting systems. Smart Contracts applications like FollowMyVote which works on Blockchain technology offers a secure online voting platform ensuring accountability and transparency during elections.
By adopting this technology, the government can prevent human error and overcome the hurdles of faulty systems. This will help reduce costs significantly and ensure greater security, voter privacy and easy accessibility, which can help boosts voter turnout.
4. Smart Contracts Applications for Insurance
One of the major hurdles for most insurance companies is the time-consuming claim process. Since this process is done manually, it leads to not only customer dissatisfaction but also increases the administrative costs. Thus, if insurance companies want to improve and streamline their operations then they should seriously think about using Smart Contracts applications.
With Smart Contracts, an insurance company can automate the claim process by defining terms & conditions or setting pre-agreed parameters, which when met successfully will lead to the release of the exact amount. This will help companies improve customer relationship and trust. Plus, it will reduce the administrative costs, saving more money.
5. Smart Contracts Applications for Supply Chain
For retailers, supply chain management can be a challenge as it involves a lot of tasks. Ensuring each and every task is done as per specifications may not always be possible leading to theft and mismanagement. As such, in this scenario, Smart Contracts can be your trusted companion. From tracking inventory to managing invoices & reports to monitoring compliance, retailers can achieve a lot more through this technology that too, at reduced costs.
Offering benefits like greater transparency, automation of day-to-day tasks, reducing fraud and helping save money, Smart Contract is just what retailers need to enhance administration and management efficiency.
6. Smart Contracts Applications for Management
Smart Contracts can help with smooth business management and seamless workflow within an organization or industry. By automating the management system, one can be sure of timely performance without any delays. It can also help improve accuracy and increase transparency while eliminating errors that come with independent processing.
Through Smart Contracts, various business operations can also be handled at a faster rate, without having to wait for internal or external approvals, as soon as the pre-set/agreed conditions are met. One can also automate payrolls for their staff, thus ensuring timely payment at all times without a hitch.
7. Smart Contracts Applications for Automobile
Lack of transparency is one of the biggest challenges in the auto industry that can be easily resolved with Smart Contracts. From quoting a fair purchase price and leasing to keyless authentication and digitization of records, Smart Contracts can make everything transparent, thus improving accuracy and eliminating the need for a middleman. This can help save a lot of time and money and can help resolve numerous other potential issues in the future, especially in the vehicle supply chain area.
8. Smart Contracts Applications for Banking
The banking industry can greatly benefit from adopting Smart Contracts applications to automate different traditional model of transactions. From loans and payments to online identity management and other financial operations, Smart Contracts can help streamline various processes safely and securely.
For instance, with the help of Smart Contracts, banks and credit institutions can easily automate the KYC process for individuals as well as businesses. This will ensure accurate transfer of information while ensuring the client complies with the set regulatory norms, thereby greatly reducing the room for manual errors or misinformation.
9. Smart Contracts Applications for Legal Issues
We all know that with the traditional model, resolving legal issues and verifying and certifying documents can be a time-consuming and expensive affair which can lead to unnecessary delays. Thus, to eliminate the need for notarization, Smart Contracts Blockchain can be used to automated various legal processes, thereby offering faster and unbiased resolutions which are also cost-effective. One example of notarizing documents using the Ethereum is Nottar.io.
10. Smart Contracts Applications for ICOs
An Initial Coin Offering (ICO) is a fundraising (crowdfunding) system in which new applications that use blockchain technology
sell their underlying crypto tokens in exchange for Bitcoin and Ether (token on the Ethereum platform). These tokens can be likened to the shares in a company, and the value/price of it increases/decreases based on the demand or popularity of the project/application. Some of the ICOs that have found success through this route is BunnyToken
To understand how Smart Contracts applications can help with ICOs, here is an example.
Suppose to start a project, you require $100,000. Here, let’s assume that $100,000 is equal to 50,000 Ether. You decide to call your tokens (XYZ) and put 100,000 XYZ tokens into the smart contract. Let’s say that each XYZ token is valued to be 0.5 Ether. Thus, to achieve 50,000 Ether, you need to sell 100,000 tokens i.e 100,000 x 0.5 = 50,000
Now, in the smart contract, you can set conditions like;
IF/WHEN an individual sends 0.5 ETH to the smart contract, THEN the smart contract will send 1 XYZ token to the individual who sends 0.5 ETH.
Thus, with Smart Contracts, you can securely automate the whole crowdfunding process while ensuring that the individuals contributing towards the ICO are getting the right amount of XYZ tokens.